Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Centamin (LSE: CEY; TSX: CEE) showcased a robust performance in 2023, achieving gold production of 450,058 ounces and successfully meeting its annual guidance for the third consecutive year.
For the current year, Centamin has outlined a production forecast ranging between 470,000 oz. and 500,000 oz. This outlook is driven by ongoing enhancements in output at its flagship Sukari mine in Egypt, capitalizing on a favourable gold price environment.
https://www.mining.com/centamin-annual-gold-production-meets-guidance-revenue-rises/
You may be aware.
Last week, Lula’s government pledged 1.2 billion reais ($245 million) on security and assistance efforts for the Yanomami, and Federal Police Director General Andrei Rodrigues said Brazil’s government must throw its full weight into defending the Indigenous people.
On Wednesday, Federal Police announced the start of a new operation against illegal mining in Yanomami territory and said in a statement they will have the support of the armed forces.
https://www.mining.com/web/gold-miners-bring-fresh-wave-of-suffering-to-brazils-yanomami/
So it would be unusual for the share price not to fall back a bit!
It's partly due to the closing of those CFD positions to take a bit of money off the table or pocket profit and avoid any Monday opening gap down!
Hi Dasut,
To honest , not my quote/ observation, it was from a senior broker on the train who represents some clients with considerable holdings of Centamin, evidently they were generally a little disappointed as they were were hoping for better, but they are now waiting to see what is revealed in March before making any decisions.
A rough check and we are about where we were 2 months ago when the POG was similar. BUT---I feel happier now that we have had the Q4 results.
Tibbs where did you get the quote that the open pit is a drag on profitability, because as I see it without the open pit contribution you won't cover your costs?
Yes less profitable than the earlier years but many successful businesses have the less profitable aspects but they pay the bills and others pay for the expensive holidays.
I haven't read where Horgan has said Capital are opening up high grade areas the way I see it is they were assisting in opening up areas to add the flexibility and consistency. Yes higher grades because when the earth moved they were restricted to moving 0.5 grams per tonne until they could get back into the west wall at 2 grams per tonne.
Goldgnome as I say my numbers were very rough and only take into account the basic muck shift truck and shovel and also rounded somewhat because $2 and 150 tonnes made the sums simple.
Yep- economics move things...
when i have not much to do, i like to run through the imf bailouts, and debt list for the different countries. it is getting a tad tight.
those in dire strats
egypt
ghana
el salvador,
lebanon (!)
ukraine
malawi
****stan
sri lanka
argentina
bangladesh
burkina faso
mali
colombia
chad
congo
angola
sth africa
sth sudan
those in very hot water
afghanistan
burundi
cameroon
ethiopia
kenya
uganda (have a look at how the govt stifles entrepreneurship with outrageous taxes)
liberia
sierra leone
png
mozambique
zimbabwe
thanks goodness for the imf
are they really getting anywhere, sustainable change.
sadly not
there is a lot to like about gold. i recetntly spoke to the small scale gold miners in zimbabwe, and they are in the money...ditto in mali (plane straight to dubai for us$)
pathetic system really
glad i live in oz, where our productivty has got lower, salaries and costs of business higher and company bankrupties jumping
good game of cricket in adelaide, and we have the australian open tennis.
bread and circuses all round with a glass or 5 of wine...
good luck
the gnome
A great set of results barely moves the SP. Then a bit of risk-on sentiment and we're up 2%. It's just odd.
Mr Tibbles. How impressive you are posting at 2.37, are you still on Cornish time.?
Major European stock indexes traded higher in the premarket on Friday as investors awaited the latest reading on Germany's producer prices and United Kingdom's retail sales.
The DAX was 0.18 higher at 8:00 am CET. Simultaneously, the FTSE rose 0.12%, the CAC 40 grew 0.18% and the Euro Stoxx 50 increased 0.39%.
The euro traded 0.11% higher compared to the dollar at 7:58 am CET, going for 1.08810. At the same time, the pound was flat against the dollar, selling for 1.26967.
Baha Breaking News (BBN) / DD
Happy Friday y’al
Enjoy your weekend
The ousted boss of Endeavour Mining has been stripped of more than £20million of pay just weeks after he was fired for gross misconduct.
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Sebastien de Montessus, who had led the gold miner since 2016, was sacked earlier this month after an investigation into two separate incidents including an irregular payment of £5million relating to the sale of a company asset as well as allegations about his personal conduct.
Endeavour Mining said he will lose £23million of pay, including £14million relating to a bonus for 2023 and unvested share awards.
The board also wants to retrieve £9million of payments from previous years.
It comes just one month after oil giant BP decided to strip former chief executive Bernard Looney of £32million in pay and bonuses following a scandal over his behaviour.
Endeavour, which is the largest gold producer in West Africa, became aware of the irregular payment during a review of its acquisitions and sales of parts of the business.
It is unclear where the payment was directed and a review is ongoing into the details.
De Montessus, 49, faces separate allegations over his conduct with colleagues, reported in October through a ‘confidential whistleblowing channel’ and which have prompted an external investigation, Endeavour said.
He was among the highest-paid Footsie bosses, earning £8.9million in 2022, and £18.8million the year before.
https://www.dailymail.co.uk/money/markets/article-12980575/Ousted-Endeavour-Mining-boss-stripped-23m-misconduct-scandal.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
Rebess and other members,
After over eight years of trying to put it off the reality it's time s to finally admit the open pit is simply a drag on profitability at current grades!
From what Mr Horgan has stated in the past the whole point of the Capital waste moving project was to get access to better grades in more places, which is apparently underground!
Or is quarter 4 2023 an anomaly?
If not, I wonder how the EMRA would handle learning the open pit gold would be best left in the ground to ensure the viability of Sukari and future profits.
Likely the news would go down like a lead balloon!
Operational viability-
Run-of-Mine leaching has the advantage of very low processing cost and is used as an add-on that can generate cash flow as the overheads are carried by the higher grade ore than is treated conventionally. However it has usually a much lower metallurgical recovery.
However It cannot/should not be regarded as main production
So check 0.67 g/t Au feed and do some rough numbers.
Gold price - US$2,000/oz
US$64/g
Grade - 0.67
Value - US$43/t
Recovery - 80%
Value after treatment - US$34/t
Mining cost - US$3/t (I do not believe his US$2/t cost, that is nowhere in the world achieved apart from sometimes in Mexico).
Strip Ratio - 5
Mining Cost - 6 x US$3 = US$18/t
Processing Cost - US$10/t
G&A - US$5/t (= guess, I did not check)
Total Opex - US$33/t
Add to this Royalty + Sustaining Capex Cost + Corporate Overheads and you have negative cash flow.
Thanks Goldnome , with a very good explanation , a very informative article.
Thanks Dasut
You have to factor in recovery, but you are on the money.
The average open pit grade in 2021 was 1.29gpt gold, down 16% since 2012, while the average underground grade was 4.15gpt, down 20%
https://stockhead.com.au/resources/when-it-comes-to-gold-deposits-grade-is-not-king/
regards
the gnome
Hi Dasut,
A highly experienced professional analysts opinion on today's RNS .
The fact of the matter is that with such grade the open pit operation makes nothing to very little cash flow.
In my reports I have also always pointed out that the Sukari resource model is based on Multiple Indicator (“MI") Kriging and that I suspect that the assumed selectivity of distinguishing between ore and waste is not possible resulting in more blocks of waste being designated ore and send for processing.
I think that MI is a very dangerous method of grade estimation and usually overestimates grade. In practice the selectivity does not occur resulting in lower grade. There are a number of other examples (Moose River, Brucejack) where they had to find out the hard way.
I shall be asking for the rationale behind Centamin’s chosen method of grade estimation, but then perhaps they prefer to employ those analysts data that give them the answers they want so that they can reel in the unsuspecting investors?
Tibbs
Steve yes for a large trader but even so I would have hoped it would have been a higher price by the close of play today.
If there’s any proof anyone needs that this is a great trading stock- today is more proof.
Trade it, don’t hold- no stamp duty and use economic indicators to trade it.
Rebess the open pit is the best place to have low grades because it is the cheapest place to actually move a tonne of material. Just a quick and dirty calculation.
Capital move waste for about $2 per tonne if that tonne carries 0.67 grams and a truck carries 150 tonnes then it is carrying about 3.5 ounces so approximately $6,800 per truck at a cost of $300 per truck load.
This is an average brought down by the very low grade leach dump ore.
The dump leach at say 0.3 will still show a profit and far better than throwing on the waste dump at a cost of $300 per truck load and zero return.
Leach pads save the extra costs of the expensive processing through the plant, nowhere near as efficient but cheap way of processing very low grade ore. If the gold price was down where it was back in the late 90's it wouldn't be worth mining such low grade ore and leach dump pads were very much the way to go even with grades at 1.5 grams per tonne.
Something always better than nothing.
Looks like the market liked today’s update?
A couple of decent broker updates in the next few days will further push the share price.
Tony is spot on - they were stripping waste rock and found it contained gold at very low grade - an unexpected bonus - thousands of tonnes of worthless rubble became pay dirt and went straight to the dump leach. It did bring down the average grade from the open pit but it was a good thing.